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Ambrose Evans-Pritchard–Global Economic Fear gauge enters the red zone

Posted on September 23, 2011 by Kendall Harmon

Key indicators of credit stress have reached the danger levels seen before the Lehman Brothers failure three years ago, with Markit’s iTraxx Crossover index ”“ or “fear gauge” ”“ of corporate bonds surging 56 basis points to 857 on Thursday….

The yield spread between Italian 10-year bonds and Bunds reached a fresh record of 408 basis points before the European Central Bank (ECB) intervened in late trading. It is near the level at which LCH.Clearnet raises margin requirements, the trigger that forced Greece, Portugal and Ireland to request bail-outs.

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Posted in * Culture-Watch, * Economics, Politics, * International News & Commentary, --European Sovereign Debt Crisis of 2010, Credit Markets, Currency Markets, Economy, England / UK, Euro, Europe, European Central Bank, France, G20, Germany, Globalization, Greece, Ireland, Italy, Portugal, The Banking System/Sector, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--